You agree that at no time during the term of your employment with the Company will you engage in any business activity which is competitive with the Company nor work for any company which competes with the Company.
Non-Competitive Activity at New Employer: One of the most straightforward ways to overcome a noncompete is by ensuring that your new role with a different employer is in a non-competitive capacity. If you're not engaging in activities that directly compete with your former employer's business, you may be in the clear.
Several factors can void or limit the enforceability of a non-compete agreement, including overly broad restrictions, unreasonable time frames or geographical limits, lack of consideration (such as compensation or job opportunities provided in exchange for the agreement), and violation of public policy.
1 Michigan courts continually uphold and enforce non-competes. 2 However, recent non-competes in Michigan have been subject to debate because of the many disadvantages such clauses pose to employees.
1 Michigan courts continually uphold and enforce non-competes. 2 However, recent non-competes in Michigan have been subject to debate because of the many disadvantages such clauses pose to employees.
There are many legal defenses against enforcement of a non-compete or non-solicit agreement. For example: The agreement is overbroad in its time or geographic scope. The scope of the non-compete or non-solicit may be overbroad in geography or time.
In Michigan, non-compete agreements are generally enforceable if they are reasonable in scope, duration, and geographical limitation. They must also protect a legitimate business interest, such as trade secrets or customer relationships.
SCOPE, DURATION, AND GEOGRAPHY In Michigan, broad or excessively restrictive non-compete clauses can render an agreement unenforceable. Courts may either void the agreement or modify it to align with what's deemed “reasonable.”
Employers do not need to notarize non-compete agreements. The dated signatures of a company representative, such as a manager or HR representative, and the employee are typically sufficient.